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Sep 18, 2017

Inaugural Lecture and Seminar on Choice-Based Optimization

Seminar on Choice-Based Optimization on Wednesday October18th, 2017 at Department of Transport Systems Management in the University of Applied Sciences Karlsruhe.

Demand is
an important quantity in many optimization problems, such as revenue management
and supply chain management. Demand usually depends on “supply” (price and
availability of products, f.e.) which in turn is decided on in the optimization
model. Hence, demand is endogenous to the optimization problem. Choice-based
optimization (CBO) merges discrete choice models with math programs. Discrete
choice models (DCM) are applied by both - practitioners and researchers - for
more than four decades in various fields. DCM describe the choice probabilities
of individuals selecting an alternative from a set of available alternatives.
CBO determines (i) the availability of the alternatives and/or (ii) the
attributes of the alternatives, i.e., the decision variables determine the
availability of alternatives and/or the shape of the attributes. We present CBO
applications to location planning, supply chain management, product portfolio
planning, and revenue management.